Valentina Heights, a Bulgarian company, engaged in tourism, restaurant, hotel, and travel organization activities. They rented a tourist apartment complex known as “Valentina Heights” in Bansko, Bulgaria, owned by private individuals. The owners agreed to let Valentina Heights manage, maintain, and rent the apartments on their behalf. Valentina Heights applied a 9% VAT rate to the accommodation in the complex. The municipality initially classified the complex as a guesthouse with 9 rooms and 19 beds, but the certificate was later revoked. The Bulgarian Tax Authority imposed a tax assessment for the period when Valentina Heights did not have a classification certificate, and therefore incorrectly applied a 9% VAT rate. The ECJ ruled that a national regulation requiring a classification certificate for applying a reduced VAT rate to accommodation provided by hotels and similar establishments must be limited to specific aspects of these services and comply with the principle of fiscal neutrality.
Source BTW jurisprudentie
- C-733/22 (Valentina Heights) – Judgment – The eligibility for a reduced VAT rate for hotels cannot be contingent upon possessing a categorization certificate
- Roadtrip through ECJ cases: Focus on ”VAT rates” (Art. 96-99)
- Join the Linkedin Group on ECJ VAT Cases, click HERE
- VATupdate.com – Your FREE source of information on ECJ VAT Cases